Is Etrade brokerage and IRA (ROTH, Traditional) account free of charge to open and use? Is stock trading on Etrade Pro free to all clients?

Is Etrade Free To Use?

The answer to the question "Is Etrade Account Free?" is Yes and No. "Yes" - it costs nothing to open and have an account at Etrade - there are no annual account fees as well as no setup, maintenance or inactivity charges. And "No" - if you wish to buy or sell a stock, ETF, or mutual fund there are usually broker commissions to pay (with some exceptions).

To open a non-retirement account at Etrade you need just $500 which you could withdraw after a week. For a retirement account there is no initial deposit requirement.

Etrade charges $6.95 fee for selling and buying any stock or ETF. Clients making 30 or more trades per quarter are getting a $2 per trade discount. Unlike some other online brokers, there is no surcharge to trade penny stocks or large amount of shares. However, the broker has a surcharge of $0.005 per share on extended hours trades (ECN fee) as well as trades executed through Etrade Pro at an ECN.

As you see, Etrade is not free to trade. If you want a broker who is really free (has no commissions) check out Firstrade Review.


Open Etrade Account

Is Etrade Pro Free?

Etrade Pro is the flagship web-based trading platform offered by Etrade. It's a software that active traders, day-traders and professional investors use. Only customers who execute 30 or more trades per quarter or have $250K account balance get it at no charge. Otherwise Etrade Pro costs $99 per month (in sharp contrast to TD Ameritrade's Thinkorswim platform which is available to all clients free of charge).

All Etrade Trading Fees

Stocks and ETFs $6.95 or $4.95*
Options $6.95 + $0.65 per contract or $4.95 + $0.50*
Mutual funds $19.95
Bonds $1 per bond with $10 minimum, $250 maximum
Futures $1.50 per contract, per side + fees
Certificates of Deposit (CDs) $24.95

* - $4.95 per equity trade and 50 cents per options contract for users who make 30 or more trades in the prior calendar quarter.

Etrade Review and Rating

Etrade brokerage firm rating

Etrade Financial has been offering Individual Retirement Accounts (IRAs) on their website for over a decade. Investors can rollover existing IRAs from their employers or another brokerage firm at no cost. Etrade’s recently revamped trading platform offers tools and services similar to other brokerages such as TD Ameritrade or Scottrade but trade fees are higher than most competitors. This article will discuss the pros and cons of using Etrade for IRA accounts.

IRAs are free to setup with Etrade and are not charged any annual fees. Applications take about 5-10 minutes to complete. In compliance with the US Patriot Act, investors will have to provide four important pieces of information to open an account:

  • U.S. Permanent Residential Address
  • Date of Birth
  • Social Security or Tax ID number
  • Employer name and address

For those with limited credit or employment history, Etrade may require additional pieces of identification such as a State ID or driver’s license before accepting funds. It is prudent to assume a two-week waiting period between initial application and availability of funds for trading in the online account. It is important to notify Etrade or any another brokerage of changes in this information as any inconsistency will result in account suspension.

Retirement is a big deal and no doubt Etrade has a variety of individual retirement accounts (IRAs) to help you get there. However, just as important as the number IRAs available is the number and types of investment options that you can choose from within each IRA. Aside from great offer codes Etrade also provides a number of features and tools to help investors to get the best returns.

Continue Reading